Product Costs using Activity Rates

Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:

Product Costs using Activity Rates Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows Activity Fabrication Assembly Setup Inspecting Production scheduling Purchasing The activity-base usage quantities and units produced for each product were as follows: Activity Base Machine hours Direct labor hours Setups Inspections Production orders Purchase orders Units produced Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Activity Rate $21 per machine hour $8 per direct labor hour $55 per setup $29 per inspection $9 per production order $6 per purchase order Elliptical Machines Treadmill 1,931 411 57 707 72 209 246 1,139 160 424 127 165 Total Activity Cost Activity Cost Per Unit Elliptical Machines Treadmill